What Are the Risks of Overpricing Your Home?

Northern New Jersey Real Estate Expert discusses the importance of pricing your home properly.

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 Today, we want to briefly discuss the dangers of overpricing your home.

In our current market, home prices are increasing each year, as homeowners are trying to get as much as they possibly can for their homes. However, you need to be strategic when putting a price on your property - here are five reasons why:

  1. Buyers look in price brackets: If you price your home well above what it's worth, you're losing a lot of potential buyers who will simply pass it up, which will result in fewer offers.
  2. When buyers pass up your home, they look at other homes: If homes similar to yours are priced much lower, buyers will have no problem making an offer on your competitor's home!
  3. Starting high and coming down later is risky: You're missing out on a lot of buyers by waiting a long time to price your home fairly. The first 30 days are crucial for generating interest in your home.
  4. Your home will be compared to better homes: If you price your home into a higher price bracket, buyers will be comparing your home to ones with more amenities, features, and benefits. In other words, the people who will appreciate your home won't see it.
  5. Your home takes longer to sell: When your home sits on the market for a long time, buyers and agents alike start to wonder whether there is something wrong with it. Buyers will often think they can submit a low offer on a home that has been on the market awhile.
Consider these five points when pricing your home. It's really a matter of balancing the desire to get a high price and the need to attract buyers to your home!

If you have any questions about getting the most when selling your home, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to hear from you!

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